3 FTSE 100 Metals and Mining Stocks to Watch Amid Surge in Metal Prices

Summary

• There has been increasing optimism of rebound in the global economy, which would consequently reflect in the surge of demand in commodity prices Industrial metals major
• Antofagasta announced its plans to be carbon neutral and reduce its carbon emissions by 30 per cent in 2025
• Rio Tinto unveiled a new water atomized steel powder for 3D printing applications on 10 May

With successful vaccination drive across the globe, there has been increasing optimism of rebound in the global economy, which would consequently reflect in the surge of demand in commodity prices.  Iron ore and copper prices have been on a rising spree for the last sometime, resulting in a spurt in the stocks of the industrial metals and the mining sector.

Here we take a look at 3 FTSE 100 stocks in the industrial metals and mining industry with a five-year average dividend yield of over 2 per cent:

1. Antofagasta Plc (LON:ANTO)

FTSE 100 listed UK-based multinational Antofagasta is a copper mining company focused in the region of Chile. The firm announced its plans to be carbon neutral by 2050 on 12 May.

The company aims to reduce its carbon emissions by 30 per cent in 2025, from its 2020 emissions. Antofagasta expects its entire mining division to use 100 per cent renewable energy by the end of 2022. It also announced goals for hydrogen, water management, and great reporting and disclosures relating to its sustainability goals.

(Source: Refinitiv, Thomson Reuters) 

Antofagasta’s share prices were trading at GBX 1,878.50, higher by 0.46 per cent as of 12 May at 10:37 AM GMT+1, while the broader index FTSE 100 stood at 6,985.37, up by 0.54 per cent. The company’s market capitalisation stood at £18.435 billion, while its five-year average dividend yield was at 2.5 per cent.

Also Read: Two Resource Players Offering Decent Dividend Yield: Antofagasta PLC & Fresnillo PLC

2. BHP Group PLC (LON: BHP)

BHP Group is the world’s largest listed mining company and is also part of the FTSE 100 index. The company recently secured an ‘A’ rating for its Long-Term Issuer Default Rating (IDR) and senior unsecured by rating company Fitch. The company’s long-term IDR was stable. Fitch also rated BHP’s hybrid notes at BBB+.

(Source: Refinitiv, Thomson Reuters) 

BHP Group’s share prices were trading at GBX 2,326.00, down by 0.15 per cent as of 12 May at 10:43 AM GMT+1, while the Industrial metals sectoral index stood at 7,053.9, up by 0.80 per cent. The company’s market capitalisation stood at £49.20 billion, while its five-year average dividend yield was at 5 per cent.

Also Read: BHP Group PLC (LON:BHP) And Vale Clears Licensing Hurdles to Start Samarco Operations

3. Rio Tinto PLC (LON: RIO) 

FTSE 100 listed Anglo-Australian multinational company Rio Tinto is the world’s second largest metals and mining company. The company announced the successful development and testing of a new water atomized steel powder on 10 May. The product is targeted to be utilised for 3D printing.

(Source: Refinitiv, Thomson Reuters)

Rio Tinto’s share prices were trading at GBX 6,605.00, up by 0.98 per cent as of 12 May at 10:46 AM GMT+1. The company’s market capitalisation stood at £81.615 billion, while its five-year average dividend yield was at 5.4 per cent.

Also Read: Rio Tinto reports strong performance in iron ore